61 min listen
207: What Happens If Interest Rates Stay High?
FromOn The Market
ratings:
Length:
38 minutes
Released:
Apr 11, 2024
Format:
Podcast episode
Description
Mortgage rates were supposed to be going down by now, but what happened? Even in late 2023, many housing market experts predicted that we’d be seeing high to mid six percent mortgage rates at this point and hovering around the high five percent rate mark by the end of the year, but the Fed isn’t showing any sign of lowering rates soon. Some experts even believe rates could go UP again this year as the job market stays hot and the economy sees unprecedented strength. This begs the question: What IF mortgage rates remain high?
It’s a reality many of us don’t want to see, but 2024 could end with minor, if any, rate cuts, keeping monthly mortgage payments high and affordability low. So, what should an investor do in this situation? Sit on the sidelines? Invest in a different asset class? Pray to Jerome Powell? While that last option may be worthwhile, top real estate investors are saying that NOW is the time to buy BEFORE rates fall. What do we mean?
We’ve got the entire expert investor panel here to give their take on what investors should do IF rates don’t fall. From house flipping to long-term buy and hold rentals, our nationwide panel of investors shares exactly what they’re doing to make money even with high interest rates. Plus, we’ll give our predictions on when rates could fall, what will happen to housing inventory, what young people should do NOW to get their first house, and why investors need to “reset” if they want to thrive in this high rate housing market.
In This Episode We Cover:
Mortgage rate predictions and when interest rates could finally start falling
What should investors do IF mortgage rates stay high throughout 2024
The “lock-in effect” and whether or not high rates are leading to lower inventory
The homes that are flying off the market in many areas (and the ones that are sitting)
How young people can creatively get into their first home or investment property
Why investors MUST “reset” their expectations if they’re to build wealth in this housing market
And So Much More!
Links from the Show
Find an Agent
Find a Lender
BiggerPockets Forums
BiggerPockets Agent
BiggerPockets Bootcamps
Join BiggerPockets for FREE
On The Market
Join the Future of Real Estate Investing with Fundrise
Connect with Other Investors in the “On The Market” Forums
Subscribe to The “On The Market” YouTube Channel
Dave's BiggerPockets Profile
Dave's Instagram
Henry's BiggerPockets Profile
Henry's Instagram
James' BiggerPockets Profile
James' Instagram
Kathy's BiggerPockets Profile
Kathy's Instagram
BiggerPockets' Instagram
The Federal Reserve Leaves Rates Untouched as Pressure Mounts on Inflation
Top Lenders on Mortgage Rate Predictions + Loans You’ve NEVER Heard Of
Why Mortgage Rates AREN’T Falling
Check out more resources from this show on BiggerPockets.com: https://www.biggerpockets.com/blog/on-the-market-207
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.
Learn more about your ad choices. Visit megaphone.fm/adchoices
It’s a reality many of us don’t want to see, but 2024 could end with minor, if any, rate cuts, keeping monthly mortgage payments high and affordability low. So, what should an investor do in this situation? Sit on the sidelines? Invest in a different asset class? Pray to Jerome Powell? While that last option may be worthwhile, top real estate investors are saying that NOW is the time to buy BEFORE rates fall. What do we mean?
We’ve got the entire expert investor panel here to give their take on what investors should do IF rates don’t fall. From house flipping to long-term buy and hold rentals, our nationwide panel of investors shares exactly what they’re doing to make money even with high interest rates. Plus, we’ll give our predictions on when rates could fall, what will happen to housing inventory, what young people should do NOW to get their first house, and why investors need to “reset” if they want to thrive in this high rate housing market.
In This Episode We Cover:
Mortgage rate predictions and when interest rates could finally start falling
What should investors do IF mortgage rates stay high throughout 2024
The “lock-in effect” and whether or not high rates are leading to lower inventory
The homes that are flying off the market in many areas (and the ones that are sitting)
How young people can creatively get into their first home or investment property
Why investors MUST “reset” their expectations if they’re to build wealth in this housing market
And So Much More!
Links from the Show
Find an Agent
Find a Lender
BiggerPockets Forums
BiggerPockets Agent
BiggerPockets Bootcamps
Join BiggerPockets for FREE
On The Market
Join the Future of Real Estate Investing with Fundrise
Connect with Other Investors in the “On The Market” Forums
Subscribe to The “On The Market” YouTube Channel
Dave's BiggerPockets Profile
Dave's Instagram
Henry's BiggerPockets Profile
Henry's Instagram
James' BiggerPockets Profile
James' Instagram
Kathy's BiggerPockets Profile
Kathy's Instagram
BiggerPockets' Instagram
The Federal Reserve Leaves Rates Untouched as Pressure Mounts on Inflation
Top Lenders on Mortgage Rate Predictions + Loans You’ve NEVER Heard Of
Why Mortgage Rates AREN’T Falling
Check out more resources from this show on BiggerPockets.com: https://www.biggerpockets.com/blog/on-the-market-207
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.
Learn more about your ad choices. Visit megaphone.fm/adchoices
Released:
Apr 11, 2024
Format:
Podcast episode
Titles in the series (100)
3: 8 Homerun Housing Markets of 2022 (and Beyond!): When choosing a 2022 housing market strategy, you’ll need a few key ingredients. Things like job growth, population growth, affordability, and new construction are just a few ways to see whether or not a real estate market will stand the test of time. As the housing market begins to see some stalled demand and we enter into potentially “bubblicious” territory, the smart investor begins looking for the best place to park their money for the long term.Back again for our second episode of On The Market is VP of Data and Analytics at BiggerPockets, Dave Meyer, buy-and-hold addict, Henry Washington, head honcho of wholesaling, Jamil Damji, and our resident Californian, Kathy Fettke. This time, we’ll be touching on the latest data and news claiming that the US is starting to enter into a housing market bubble and how demand has sharply declined since interest rates have begun to rise.We also share our favorite 2022 housing market picks for by On The Market